Shareholders unanimously approve Yashili to acquire Dumex China

Yashili International Group had arranged an extraordinary general meeting recently to seek approval from its shareholders regarding the all-cash deal to acquire Dumex China, and they had approved the deal unanimously.

Under the previously disclosed agreement, Yashili will pay Euros150 million (US$167 million) to fully acquire Dumex China, an infant formula unit of French dairy giant Danone SA, including all trademark license agreements and patent license agreements etc.

After the transaction, Dumex China will become a wholly owned subsidiary of Yashili, and the former will no longer be required to pay any "Dumex" brand royalties and technical assistance fees, which accounted for 8.5% of its total costs previously. In addition to improving its existing products range, Dumex will also be focusing on high-end dairy products, and will be shifting its production lines for high-end products to Yashili's infant formula plant in New Zealand.

According to Yashili, the total revenue for Dumex China over the last five months of last year was RMB213 million (US$32.36 million), an increase of 47% compared to the first seven months of 2015. For the first three months of this year, the total revenue for Dumex China had reached RMB117 million (US$17.77 million).